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AM Best Affirms Credit Ratings of Toyota Motor Insurance Company

AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Toyota Motor Insurance Company (TMIC) (Cedar Rapids, IA). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect TMIC’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

TMIC’s balance sheet strength is supported by its strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), low underwriting and investment leverage ratios, excellent liquidity metrics and organic and steady surplus growth, reflecting favorable operating results, especially in recent years. TMIC’s adequate operating performance assessment is supported by TMIC’s solid overall profitability, including better-than-expected operating profits recorded in each of the most recent three years. The higher operating profits were mainly attributable to the pandemic and pandemic-related circumstances such as less miles driven and higher residual values on used cars. While these factors could continue in the immediate term, TMIC’s profitability is expected to return to more historical levels in the intermediate term.

TMIC’s neutral business profile benefits from its relationship with its U.S. parent, Toyota Motor Credit Corporation (TMCC), partially offset by its dependence on TMCC and the same factors that may impact the auto industry adversely. The company’s appropriate ERM framework incorporates traditional risk management techniques specific to the auto industry, and TMIC benefits from TMCC’s enterprise-wide risk management approach to capital management, innovation and safety protocols.

The stable outlooks reflect AM Best’s expectation that TMIC will maintain its strongest level balance sheet strength assessment, adequate operating performance and neutral business profile without divergence from its risk profile as the auto market navigates through supply shortages and carbon neutrality.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


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